SME and Entrepreneurship Policy in Indonesia 2018

SMEs play an important role for economic growth and social inclusion in Indonesia.
Based on data from the Ministry of Co-operatives and SMEs, Indonesian SMEs account
for nearly 97% of domestic employment and for 56% of total business investment.
Indonesia has a Micro, Small and Medium Enterprise (MSME) Law and a specific ministry
dedicated to co-operatives and SMEs. The wealth of public programmes for SMEs could
be streamlined, and more could be done to support innovative companies able to generate
productive jobs and participate in international markets. The development and implementation
of an SME strategy would be instrumental to improve the overall coherence of national
policy measures, objectives and measurable targets.
The review of SME and entrepreneurship policy of Indonesia is part of a peer-reviewed
series, by the OECD Working Party on SMEs and Entrepreneurship, which aims to improve
the design, implementation and effectiveness of national SME and entrepreneurship
policies.